Home Forex Summary and Action Plan: What’s Next for Small Caps, Beans and Oil?

Summary and Action Plan: What’s Next for Small Caps, Beans and Oil?

by SuperiorInvest

Since we returned from vacation, I wrote 3 Daily’s.

The first was about the Modern Economic Family and how it opened its loving arms to the bulls.

I was especially interested in small cap companies or ().

IWM-Daily and Monthly Chart

I wrote: “Starting with IWM or Granddad Russell 2000, Monday started with a gap above the 50-DMA (blue).

We will be attentive to confirm a phase change. Additionally, the monthly chart shows IWM back above the 80-month MA (green). Resistance in the 191 area is available if IWM remains above 174”.

Phase change-YES

Holding 174-YES

Still above the 80-month MA-YES

Is 191 available if you continue holding it? YEAH.

SOYB-Daily and Monthly Chart

SOYB-Daily and Monthly Chart

Next, I wrote a Daily about soybeans as the next potential parabolic runner.

“Meanwhile, the Teucrium Soybean Fund (NYSE:) saw a huge influx of investor money.

The monthly chart presented shows prices hovering around all-time highs.

In 2012 the maximum was 28.88. In July this year, SOYB reached a new high of 29.43.

The sideways consolidation on this monthly chart suggests that a move towards 34-35 is possible.”

The daily chart is in a bullish phase, yes.

The futures contract here, shown via the rolling contract and not the January 2024 contract, looks different.

The continuous contract is below the 23-month MA, while the ETF futures contract is above the 23-month MA.

Lateral consolidation-YES

Ready to run? -NOT YET.

But watch for a move above 1400 in the January 2024 contract as a good start, as long as it contains 1250.

USO monthly chart

This week’s next diary was titled: The New Gold: Buy When There’s Blood on the Street

The thesis was that oil is a buy just when everyone turned bearish. Like “you buy it when it looks horrible, sell it when it looks strong.”

WTI oil price chart

The futures contract (December) shows that $72 held on Friday with a move to almost $76.

Was it a bloody purchase in the streets? YEAH

Do we have a support level now?- YES

Next week, let’s hope oil breaks above $76 to continue the rally.

ETF Overview

  • S&P 500 (SPY) 450 deleted see 465 Low 450 435 support
  • Russell 2000 (IWM) 181 resistance 174 support
  • Dow Jones (DIA) 360 resistance 346 support
  • Nasdaq (QQQ) 388 must clear and 370 must hold
  • Regional banks (KRE) 45 great resistance
  • Semiconductors (SMH) 160-161 pivot bracket
  • Transportation (IYT) 235 support
  • Biotechnology (IBB) 120 fundamental
  • Retail Trading (XRT) 65 resistance and 60 fundamental support

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